Shake Shack crushes earnings and now the stock is exploding

Shake Shack
reported second quarter earnings on Monday that crushed
expectations and now the stock is exploding higher.

Adjusted earnings per share came in at
$0.09 while revenue totaled $48.5 million, both better
than expected.

Same-store sales rose 12.9% in the second quarter, better
than expected.

In after hours trade following the results, shares of the company
were up as much as 10%.

Wall Street was looking for earnings per share of $0.03 on
revenue of $42.8 million. Same-store sales were expected to rise
9% in the second quarter.

Over the last 3 months, Shake
Shack shares have been virtually unchanged after the stock had a
wild ride shortly after its January market debut.

In the second quarter, Shake
Shack said average weekly sales at US locations were $102,000, up
7% from the prior year.

For the full-year, Shake Shack
raised its revenue outlook to $171-$174 million from $161-$165
million.

The company also increased its
same-store sales outlook, now expecting full-year same-store
sales to increase by mid- to high-single digits from low- to
mid-single digits previously.

Shake Shack also expects it
will open 12 company-operated locations in 2015. The company had
previously forecast that it would open 10 such locations this
year. Shake Shack also said the company expects to open 12
locations per year in 2016 and beyond.

In its filing, Shake Shack
said this offering will facilitate the sale by existing
shareholders, presumably company insiders who haven't been able
to sell their stakes following the IPO, as the company won't
receive any proceeds from the offering.